Assignment Task: You are to assume you are a consultant working for the company. You will want your report to be professional and "ADD VALUE" to the company. Use an executive summary, followed by the detailed report. Be sure to include the following:
(1) Argue for the use of Activity-based costing by in this case by:
a) Describing when Activity-based Costing is appropriate and when Traditional Costing is appropriate and when each is not appropriate to use.
b) Discussing what are the strengths and weaknesses of ABC? When is it appropriate to use? What kinds of business situations suggest the need for ABC?
c) Applying a &b to the case and arguing for an Activity-based Costing system.
(2) Describe the Activity-based costing system you are recommending. Include a justification for the cost driver selected.
(3) Present your new cost findings. Include both per unit and total cost data. There should be tables with cost information included.
(4) Make strategy recommendations for each product and for the plant.
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